Universal Electronics Up 12%, But Some Insiders Miss Out

Despite the fact that Universal Electronics Inc. (NASDAQ:UEIC) stock rose 12% last week, insiders who sold US$327k worth of stock in the previous 12 months are likely to be better off. Selling at an average price of US$11.48, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

We've discovered 1 warning sign about Universal Electronics. View them for free.

The Last 12 Months Of Insider Transactions At Universal Electronics

In the last twelve months, the biggest single sale by an insider was when the Consultant & Director, Paul Arling, sold US$155k worth of shares at a price of US$11.73 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$5.32. So it may not shed much light on insider confidence at current levels.

Insiders in Universal Electronics didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Universal Electronics

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Does Universal Electronics Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Universal Electronics insiders own about US$3.6m worth of shares (which is 6.1% of the company). We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Universal Electronics Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Universal Electronics insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Universal Electronics. At Simply Wall St, we found 1 warning sign for Universal Electronics that deserve your attention before buying any shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.